Contract Law 功課
A written an offer letter to B to sale his car to B for $50,000 on 1st Mar 2010.
Without any knowledge abour the offer letter from A, B has also, on the same day, written to A to offer the purchase of A's car, also at the price of $50,000.
On 3rd Mar 2010, B has received A's first letter and decided to conclude the purchase with A by writing to A again confirming his agreement to purchase the car at the price of $50,000.
Nevertheless, B's letter was posted to A only on the 5th Mar 2010.
Unexpectedly, in fact, A on the 4th Mar 2010 after receiving B's offer letter, has changed his mind and wanted to increase the price from $50,000 to $80,000 and therefore A has written another letter to B revoking his first offer and offering the new price to B for his acceptance and this letter was posted to B on 4th Mar 2010.
On 6th Mar 2010, B had received the letter from A revoking his first offer containing in his letter dated 1st Mar 2010, and on the other hand it was only until 8th Mar 2010 that A has received B's letter agreeing and confirming the purchase of A's car at $50,000.
In these circumstances, please advise B and A as to their respective legal positions and whether B can take any action against A for the purchase of the car at $50,000.
Please address the respective legal positions of A and B by applying the relevant Rules of the Law of Contract, and you may make all reasonable assumptions in answering this question as you deem fit.
- KevinLv 79 years agoFavorite Answer
Typically, in order to be enforceable, a contract must involve the following elements: A "Meeting of the Minds" (Mutual Consent) The parties to the contract have a mutual understanding of what the contract covers. For example, in a contract for the sale of a "mustang", the buyer thinks he will obtain a car and the seller believes he is contracting to sell a horse, there is no meeting of the minds and the contract will likely be held unenforceable. Offer and Acceptance The contract involves an offer (or more than one offer) to another party, who accepts the offer. For example, in a contract for the sale of a piano, the seller may offer the piano to the buyer for $1,000.00. The buyer's acceptance of that offer is a necessary part of creating a binding contract for the sale of the piano. Please note that a counter-offer is not an acceptance, and will typically be treated as a rejection of the offer. For example, if the buyer counter-offers to purchase the piano for $800.00, that typically counts as a rejection of the original offer for sale. If the seller accepts the counter-offer, a contract may be completed. However, if the seller rejects the counter-offer, the buyer will not ordinarily be entitled to enforce the prior $1,000.00 price if the seller decides either to raise the price or to sell the piano to somebody else.